Netflix laid off 300 more employees on Thursday after losing subscribers in the second round of job cuts. The cuts mainly affected US employees, amounted to about 4% of the streaming giant’s workforce, and came after the company laid off 150 employees last month.
Netflix said in a statement, “While we continue to invest significantly in the business, we made these adjustments so that our costs are growing in line with our slower revenue growth,”
Netflix announced in February that it lost 200,000 subscribers globally at the start of the year and projected a decline of 2 million users in the upcoming quarter.
According to the company, many reasons caused the drop in subscribers, such as the increased competition, the economy, the war in Ukraine, and the large number of people who share their accounts with non-paying households.
To compensate for subscriber loss, Netflix is considering adding advertising to the service in return for a lower-priced subscription in addition to cutting costs, a move it had long resisted.
Netflix’s chief executive, Ted Sarandos, said the company is negotiating with several companies for advertising partnerships like Alphabet’s Google and Comcast’s NBCUniversal.
This year witnessed a big layoff wave hitting US jobs that affected many big and small companies, resulting in an enormous number of employees losing their jobs, so the question is .. what will happen next?